The EU and ASEAN: Learning from the Failed EU-Mercosur FTA Negotiations

In May 2007, the EU and ASEAN agreed to launch negotiations for an FTA. In entering the negotiation process, it is obvious that the EU has learned lessons from its failed negotiations with Mercosur. Thus the EU sought to ensure that there was a consensual basis for the (positive) assessment of an FTA's consequences, and it insisted on setting a deadline for the negotiations. ASEAN has to learn two lessons from the EU-Mercosur experience. First, there is a difference between the EU's rhetoric and the reality of the negotiations. Second, there is a wide gap between the possible negative consequences of FTA and the assistance that the EU may offer to enable countries, firms and workers to cope with these consequences.